Italian luxury group Prada is moving closer to a deal to buy Versace from upmarket fashion group Capri Holdings after agreeing to a price of nearly 1.5 billion euros ($1.6 billion), Bloomberg News reported on Sunday.

A report said Prada and Capri Holdings had agreed a 1.5 billion euro price tag for Versace, sending stock in both companies higher.

Prada is reportedly nearing a $1.6 billion deal to acquire Versace from Capri Holdings Ltd. aiming to compete with luxury giants LVMH and Kering.

Prada's effort to purchase the Versace brand from Capri Holdings Limited is reportedly moving closer to completion.

A purchase would run counter to a decadeslong trend of Italian fashion groups being taken over by foreign firms.

Milan-based Prada was founded in 1913 by Mario Prada and is run today by his granddaughter, Miuccia Prada. The company has completed initial due diligence on Versace and has been